Hold onto your gaming devices – the upcoming Nintendo Switch 2 is set to see a price hike. Effective September 1, the cost of the Nintendo Switch 2 in Canada will rise to $679.99 Cdn from its current $629.99, according to a recent announcement from Nintendo. In Japan, the price will increase to 59,980 yen from 49,980 yen starting May 25, citing market changes and global business considerations.
Nintendo’s decision to raise the Switch 2 price is attributed to increased component costs and various factors including exchange rate fluctuations. The company president, Shuntaro Furukawa, emphasized the impact of higher costs and tariffs on their pricing adjustments.
The surge in memory chip prices, exacerbated by U.S. President Donald Trump’s tariff policies and the Iran conflict, is affecting major Japanese exporters like Nintendo and Sony. This rise in memory chip costs, as reported by Reuters, is driven by the AI boom, leading to supply constraints for various tech products.
Nintendo foresees an additional 100 billion yen ($874 million Cdn) in costs for the current financial year due to higher component expenses, particularly memory, and tariff implications. This move reflects the company’s acknowledgment of ongoing cost pressures and the unlikelihood of immediate relief.
Despite the price hikes, Nintendo expects profitability to remain stable compared to the previous financial year. The company reported a net profit of 424 billion yen ($3.7 billion Cdn) for the last fiscal year, with a significant increase in annual sales driven by sustained demand for the Switch 2.
Looking ahead, Nintendo anticipates a profit decline in the coming fiscal year, factoring in the planned price adjustments. Sales projections indicate a slight decrease in Switch 2 unit sales while software sales are expected to continue growing. The company is committed to releasing new software titles for the Switch 2, including collaborations with external developers.
Following the earnings announcement, Nintendo’s stock price surged by 3.6%. The company remains optimistic about the future performance of the Switch 2, emphasizing its unique hybrid gaming capabilities and the continued expansion of software offerings.